Be prepared for markets to go further downwards: Rajan Malik

In a chat with ET Now, Rajan Malik, Head Equities, Private Client Group, MF Global shares his overview on markets.

ET Now: Overall what would you do right now in terms of not a very long-term opinion but as a value buy right now if you had to take a pick?

Rajan Malik: We certainly would not keep short positions at this point. We would wait. The market has given some kind of a panic bottom today. It went down below 5180-5200 and then has bounced back. So, one should play for a pullback but let me add a disclaimer that it is only going to be a pullback at this point because it does appear that the markets would head down south again after some kind of a pullback to 5350-5400-5450. This will depend on the internals of the pullback but be prepared for downsides once again. If you are long, keep long for the next 100-150 points, take profits at that level. If you are short, do not keep short.